Trump Confirms Reciprocal Tariff Framework as Deadline Approaches: Canada’s Rate Raised to 35%, Others Ranging from 10% to 41%

In anticipation of the August 1 deadline for implementing the United States’ "reciprocal tariff" framework, President Donald Trump signed an executive order on the evening of July 31, establishing country-specific tariff rates across a wide spectrum of trading partners.

Per the White House statement, imports from Canada will face an increased duty of 35%, up from the previous rate of 25%, effective August 1. The measure was described as necessary to address Canada's lack of response and retaliatory trade actions. Additionally, a supplementary 40% duty will apply to goods transshipped through third countries in an effort to bypass the newly imposed Canadian tariff.

Earlier that day, President Trump took to his social media platform to criticize Canada’s support for Palestine, suggesting it might complicate existing trade relations. He later clarified that the political stance would not obstruct future trade agreements but reiterated that Canada should meet its obligations under the revised tariff regime.

Ontario Premier Doug Ford issued a swift response, characterizing the escalation as worrisome amid longstanding duties on core industries such as steel, aluminum, and autos. He called for Canadian countermeasures, proposing a 50% tariff on U.S. metal imports, and urged federal leaders to take decisive action to protect the country’s trade interests.

The executive order also introduced a tiered tariff schedule for a broader set of nations, ranging from 10% to 41%. Syria topped the scale with a 41% rate, followed by Myanmar and Laos at 40%. Brazil and the United Kingdom received the lowest tariff rate at 10%, while Japan, South Korea, and most others were subject to a 15% rate. Vietnam was assigned a 20% duty. For member states of the European Union, the order specified that existing tariffs below 15% would be raised to meet the standard, while higher rates would remain unchanged.

In total, tariff classifications were outlined for 68 individual countries and all 27 EU members. Any country not explicitly named in the order will be subject to a default 10% tariff. A senior administration official noted that the rate differentials reflect each country’s trade balance with the U.S. as well as broader economic indicators by region.

The order was enacted shortly after 7 p.m. on July 31. In the preceding days, the United States had concluded trade agreements with select countries ahead of the self-imposed implementation deadline. White House sources had previously stated that any nation failing to reach a formal arrangement by August 1 would be subject to increased tariffs.

Originally proposed in April, the reciprocal tariff initiative sought to impose levies ranging from 10% to 50% on roughly 60 trade partners. A 90-day period for negotiations was initially provided and later extended to August 1. During the extension, multiple nations received formal notices warning of higher tariff exposure, with some potentially exceeding the initial range.

Mexico, unlike Canada, successfully negotiated a 90-day postponement of its tariff measures just before the deadline. As confirmed on July 31, Mexican goods will continue to face a 25% duty unless those imports comply with stipulations outlined in the United States-Mexico-Canada Agreement (USMCA). Qualifying items under USMCA are exempt, except in specified sectors subject to targeted duties.

The U.S. previously cited public health concerns—particularly related to fentanyl—as the rationale for enacting 25% tariffs on select Canadian and Mexican imports in March. Nonetheless, exemptions were granted for products in alignment with USMCA provisions.